KUALA LUMPUR: The Visit Malaysia Year (VMY) 2014 campaign will be a prime event to boost Malaysia Airports Holdings Bhd's (MAHB) earnings, Hong Leong Investment Bank (HLIB Research) said in a report.
The VMY 2014 aims to increase tourist arrivals to 28 million this year and since MAHB's earnings are highly corelated to the passenger movements growth, it will stand to benefit directly if the VMY campaign is a success.
HLIB Research expects MAHB's net profit for its financial year 2013 to hit RM444 million compared with RM394 million in the previous year.
MAHB, which runs the airports in the country, except the Sultan Ismail International Airport in Senai, Johor, is also shielded from competition and fluctuations of jet-fuel prices and foreign exchange, HLIB said in justifying its valuation.
"The airport operator remains our top pick with a higher target price of RM9.75," the research house said in a note.
The research firm also expects the operations of the much-awaited klia2 in May to further boost MAHB's earnings through retails and commercial revenue.